Music analytics and fintech startup Paperchain and Centrifuge, a decentralized platform that connects the global financial supply chain, has advancedmade its first advance based on future Spotify royalties.
The unnamed artist was paid $60,000 in August streaming revenue from Spotify 45 days ahead of their usual pay cycle with the advance delivered live at DeFi Summit London on stage using Centrifuge's Tinlake finance application. It was originated in less than 30 minutes at a transaction cost of less than $3 USD and at an interest rate 80% cheaper than current revenue advancing solutions.
The transaction is a world-first example demonstrating how decentralized finance (DeFi) technologies can unlock the $100 billion in digital media revenue sitting in 90 day accounts receivable around the world.
Paperchain co-founder and CEO, Daniel Dewar, said the transaction showed the potential for new financial solutions to solve existing media supply chain challenges.
"This is a problem that record labels and artists have been dealing with for decades, and has only been exacerbated by streaming where revenue now pools at the platform level. By pricing the daily streaming data and connecting that to programmatic banking solutions like decentralized finance technology, we can build financial products that get media revenue to creators and other stakeholders at a fraction of the time and cost of traditional finance."
"This pilot is validating our mission and demonstrating how Centrifuge Tinlake can be used by the creative industries to bridge payment gaps. We see the potential in offering financing for a wide range of asset types that can serve the music industry as well," Lea Schmitt, Product Partnerships Manager said. "We're thrilled to see how this evolves!"
The transaction details can be viewed here on Etherscan.